Which, If Any, of the Following Could Result in Penalties

question 14

Multiple Choice

Which, if any, of the following could result in penalties against an income tax return preparer? I. Knowing or reckless disclosure or use of tax information obtained in preparing a return.
II) A willful attempt to understate any client's tax liability on a return or claim for a refund.

• A) I only
• B) II only
• C) both I and II
• D) neither I nor II

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Definitions:

Gross Sales

The total revenue generated from goods and services sold by a company before any deductions are made for returns or discounts.

Advertising Fees

Advertising Fees are charges incurred for the promotion of products, services, or a brand through various advertising channels and media, aimed at reaching a wider audience and increasing sales.

Disclosure Statement

A document that outlines critical information about a transaction or investment, required by law to be presented to a potential buyer or investor.

Litigation

The process of taking legal action or resolving disputes in court.